Gold Coins

August 24, 2012

Gold Coins

The definition of gold coins are that they are flat, disc like round piece of gold that are typically issued by a government, or by a private organization. Gold coins have been around for centuries, and can be traced back to ancient times. In Gold History the Egyptian Pharaohs first minted coins around 2700 BCE, although they were not minted with the purpose of currency, but for private use by the pharaohs as gifts. It wasn’t until a few hundred years later that King Croesus began to mint gold coins with the specific purpose of using them as currency for the general population.

For the majority of history, gold coins have been the main form of currency around the world. It wasn’t until the introduction of fiat money in the 20th Century that society moved on to the paper dollar currency that we have today. Gold coins are still minted today as currency, including in the United States. However, this is not meant for currency, but for collectors and for investment purposes.

Gold bullion coins are still regularly issued, and these are held by investors not for collecting purposes, but for insurance, or a hedge, against inflation. Most gold bullion coins are issued in easy to sell amounts, with most weighing exactly one troy ounce. They also issue coins in fractional amounts of the troy ounce, with typical lots being one-half ounce, one-quarter ounce, and one-tenth of an ounce. Gold bullion coins do not have a face value. There value lies in the intrinsic value of the gold coin itself, it’s weight in Troy ounces.

Once again, gold is proven to be a safe and smart investment. Gold coins give rise to a different interest, which is collectors, who relish in the collection of these coins, many of which are extremely rare, and therefore, extremely valuable. However, many country’s issue gold coins in small amounts, including the United States Mint. The mint issues coins in amounts as small as 1/20th of a Troy ounce, and this coin would be a perfect gift for a child, or a great way to start collecting, while also being able to say you are investing at the same time.

What Makes The Maple Leaf Gold Coin So Special?

The Canadian maple leaf gold coin is perhaps one of the most sought after gold bullion coins anywhere in the world. Produced entirely from gold sources in Canada, this coin made by the Royal Canadian Mint consists of 24 karat gold. This coin has been designed with the bust of Queen Elizabeth II on one side and the Canadian maple leaf on the other.

While the South African Krugerrands, American Eagles or Chinese Panda gold coins are 22 karat (or 91.67 percent) pure gold with trace amounts of silver or copper to make gold more durable and usable, the Canadian gold coins are 99.99 percent pure. That makes the maple leaf gold coin the purest gold bullion coin in the world.

The exceptional fineness of these Canadian coins presents certain structural problems. Maple leaf coins are said to be of poor production quality since the milled edges or the areas around the Queen’s bust often feature handling marks. However, you must understand that since pure gold is a very soft metal, it is very sensitive to improper handling. Instead of considering gold coins with handling marks as flawed or poor quality, it is important to realize that this actually is an indication of the high degree of finesse of these coins.

Since the maple leaf gold coin is considerable less durable than other gold bullion coins, this coin is primarily used as an investor’s keepsake or collector’s item. It simply cannot be circulated like other currencies as these coins can easily get scratched, damaged, or even bent owing to its naturally soft structure.

These Canadian gold coins are available in different denominations like 1/20 troy ounce, 1/10 troy ounce, ¼ troy ounce, ½ troy ounce, and 1 troy ounce. If you are exceptionally wealthy, you can also consider a relatively larger investment by buying the 100kg (3215 troy ounces) gold coin launched by the Royal Canadian Mint. This fantastic maple gold leaf coin – that also happens to be the largest bullion coin in the world – has a face value of USD 1 million. If you are an investor, the Canadian gold coins can be an excellent addition to your investment portfolio.

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